Cooking oil in 5kg bottle fixed at RM34.70 in peninsula

KUALA LUMPUR: Consumers in Peninsular Malaysia will pay less for palm-based cooking oil from Aug 8 with a new fixed price of RM34.70 per 5kg bottle.

Tan Sri Annuar Musa said pure palm-based cooking oil in 5kg bottles were now being sold for between RM39 and RM42 each.

“Come Aug 8, the 5kg bottle will be sold at a ceiling price of RM34.70 per bottle,” he told reporters at the Parliament’s media centre here yesterday.

Annuar, who chairs the Special Task Force on Jihad Against Inflation, said the ceiling price would be determined by the average price of crude palm oil (CPO) to be announced by the Malaysian Palm Oil Board (MPOB) on the first day of each month.

“For example, the price of CPO per metric tonne is RM4,063 for July and this was announced by MPOB on the first day of this month. Based on the price of CPO, the calculation of the ceiling price is fixed at RM34.70 per 5kg bottle,” he said.

This method, he added, would be used to determine the ceiling price for 5kg of pure palm-based cooking oil sold by retailers for the subsequent months.

“MPOB will announce the CPO price on the first day of each month, followed by the ceiling price for the 5kg bottle a week later,” he said.

The ceiling price, he pointed out, could fluctuate depending on the CPO price the previous month.

He said engagement sessions were held with industry players who had agreed to the new ceiling price, which would provide some profit margin.

Enforcement by the Domestic Trade and Consumer Affairs Ministry on the new ceiling price, he said, would begin on Aug 8 to ensure compliance by retailers.

Besides engaging the food manufacturing sector, Annuar said the committee would be holding talks with the transportation and housing sectors on the steps to be taken to ease the rising cost of living and inflation.

On June 22, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that the government would maintain the RM4bil subsidy for cooking oil in 1kg packets allocated for this year.

The subsidised cooking oil is only for the 1kg polybags priced at RM2.50 each.

This was lower compared to the real market price of RM9 per bag and is meant for the consumption of those from the B40 group.

On another issue, Annuar said the committee would engage with some 80 representatives from private and public institutions of higher learning.

“The government is aware that the graduates are vulnerable to the rising cost of living and inflation, especially those on campus,” he said.